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April 11, 2009 10:16 AM PDT

Report: Skype co-founders may buy it back

by Natalie Weinstein
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The founders of Skype may be trying to repurchase the Internet phone service, The New York Times reported Saturday.

Niklas Zennstrom and Janus Friis sold their company to eBay four years ago for $2.6 billion. Sources told The New York Times the two men have been meeting with private equity firms and gathering their own funds to finance the deal.

Since selling their company, the two have created venture capital firm Atomico.

According to Skype, its service has more than 405 million registered users. The compares with 54 million users when eBay bought it in 2005.

eBay has acknowledged that Skype has few synergies with its core businesses, the Times said. And eBay's chief executive has publicly stated that he's willing to sell it for the right price.

Neither the co-founders nor eBay would comment to the Times about a possible sale. But the Times reported that a source with knowledge of the plans said that Zennstrom and Friis are working toward a deal worth $2 billion.

Natalie Weinstein is an associate editor who works out of Austin, Texas. She spent a decade as a reporter and editor in the newspaper industry before joining the CNET News staff in 2000. E-mail Natalie.
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by ofmyony April 11, 2009 11:43 AM PDT
Maybe someday soon someone will be able to make deals so Skype can be utilized to it's full potential. It may take government regulation for consumers to be able to use skype over 3G or 4g wireless networks without the need for high cost phone packages.

Skype has a lot of appeal now and a big media presence on shows like Oprah and Dr Phil. Once people understand that this type of service is available over their phones they will want to use it. Voip is now the preferred way to communicate in our homes, it is only a small step till we get it through our phones.

With chip makers making huge advances in phone processing power and new networks being able to handle the transfer of calls now is the time for Voip across multi platforms. Imagine having the same number no matter where you are and no matter the device. Always connected, we are here now so let's embrace voip and do away with 100 year old phone numbers.

Want to call me?
Skype me Ofmyony 60 (not really me)
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by byl01 April 11, 2009 2:26 PM PDT
I wouldn't do away with 100-year-old phone numbers just yet. Suppose there's a blackout? Or a new virus? Or a DoS attack? Or a DNS server mix-up? Any one of these things will disable the VoIP. A 100-year-old phone only needs a wire (new or 100-year-old - doesn't matter) to keep working. And it is "bus-powered", too.
by wfwumc April 11, 2009 1:48 PM PDT
BEST NEWS IN A LONG TIME!
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by loose_screw April 11, 2009 2:09 PM PDT
I never thought it made sense for eBay to buy Skype anyway. What does IP telephony have to do with auctions??? It would have made much more sense for Google to snatch up Skype.
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by arj8138 April 11, 2009 4:44 PM PDT
Only once did I ever use Skype for an eBay transaction, but it kept both parties anonymous sooo yay!
by arj8138 April 11, 2009 4:47 PM PDT
Clearly the future is to put everything over some form of Super WiFi - bigger range, better coverage, steady speeds. Phone, Data, Radio, TV, you name it, it can go over WiFi already...why not forget these analog techs and these incompatible digital ones and just switch everything to WiMax or whatever they are calling it these days.

Think about it this way - all of the local TV and Radio networks in a town convert their towers to broadcast wifi signals along side their digital [and in the case of Radio analog] broadcasts and withing 20 years everythign can be delivered via WiFi

One of the towers goes down - use channel 2's. In the car listening to the radio, in dash weather and traffic updates are constantly being pulled down for you.
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by jonathan0766 April 12, 2009 2:22 AM PDT
Skype suffers the same problem Facebook does: a couple hundred million users, and a weak revenue stream. Skype suffers from the lack of monetization. If they were printing cash they could easily buy their way into any wireless network on the planet via partnerships. Last thing this planet needs more of is government regulation, US federal laws stand at 14,000 pages already, and t
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by codynews April 12, 2009 9:07 AM PDT
So they may sell it for $2.6B, then buy it 4 years later back for $2.0B?

Over $100M a year. Not shabby. And they got to take 4 years off.

me? I'd have taken that $2.6B (I think ebay paid about $2.2B too much) and say "SEE YA!""

Cody
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by szlevi April 12, 2009 3:31 PM PDT
Anyone thinks Skype worth $2B is downright clueless. Skype's only weapon is that it's FREE as long as you don't go beyond the internet. Every other aspects of Skype is rather mediocre or downright craptastic (like its very low quality crappy video, its ****** codec etc.)

eBay is one dispecable giant who replaced one completely loser CEO who burned $2.6B on such a miniscule crap like Skype (stupid, incompetent loser Meg Whitman) with a utterly clueless yet arrogant CEO (he's Donahoe: look at the damage he did to eBay, especially in these times when they could have easily become the small sellers' Amazon instead! - so yes, there's some good news in this rumor but IMO $2B is hilarious to even think of...
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by ducttape36 April 13, 2009 9:13 AM PDT
true skype isnt the best option as far as quality, but they do have a huge install base. So if they jsut got their act together they could def be worth the money. eBay probably couldnt do it though, as someone who uses skype-in/out and has a skype number I'd be pretty pleased if it went back to the original developers.
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